Business and Personal Law

Chapter 11: Credit and Debt

Online Practice Tests

1
Creditors have access to your collateral if you have
A)closed-end credit.
B)open-ended credit.
C)an unsecured loan.
D)a secured loan.
2
Open-end credit is
A)increased by the debtor by continuing to purchase goods or services on credit.
B)to be repaid within a six month period of time.
C)interest-free for a period of up to six months.
D)given for a specific amount of money.
3
The party who buys the goods on credit is called the
A)creditor.
B)debtor.
C)secured interest.
D)guarantor.
4
An attachment of security interest occurs when
A)timely payments on the loan are not made.
B)the secured property is sold.
C)the debtor owns the collateral.
D)the party refuses to sign a security agreement.
5
A surety
A)agrees to pay off a debt outright.
B)is complete when a student finalizes his or her FAFSA.
C)is a special finance charge offered when vehicles are purchases.
D)is the party who buys goods on credit.
6
The APR is the
A)interest rate charged by the car dealer.
B)true interest rate of the loan.
C)number and amount of payments you will make on your loan.
D)cost of the loan in dollars and cents.
7
If someone steals your credit card and you notify the issuer, you are only responsible for
A)$500 of unauthorized charges.
B)$250 of unauthorized charges.
C)$100 of unauthorized charges.
D)$50 of unauthorized charges.
8
If you receive a government subsidized student loan,
A)there will be no interest charges while you are in school.
B)the government pays the interest once you graduate.
C)the government pays the interest while you are in school.
D)you will pay the interest while you are in school.
9
If you join the Peace Corp,
A)the government will provide you with a free college education.
B)your student loans may be discharged by the government.
C)the government will pay the interest on your student loans.
D)your student loans will be deferred for up to 10 years.
10
Interest is
A)a fee creditors charge for lending you money.
B)a way to receive goods now and pay for them later.
C)the property that is offered as security when you borrow money.
D)also called a guarantee for repayment.
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